Farmer / Agricultural Producer

Tax guide for New Zealand self-employed farmers, growers, and agricultural producers

Allowable Expenses

• Feed & livestock costs — Stock feed, veterinary bills, animal health products
• Vehicle & machinery — Farm vehicles, tractors, implements — business proportion
• Fuel & rural power — Farm diesel, electricity for shed/irrigation
• Agrichemicals & fertiliser — Herbicides, pesticides, fertiliser applications
• Shed & infrastructure repairs — Fencing, shed maintenance, irrigation repairs

Tax Tips

• Livestock valuation method choice (National Standard Costs or Herd scheme) significantly affects taxable income
• Farm vehicles used solely for farm work are 100% deductible — keep clear records
• Ageing stock, crop growing costs, and fertiliser are deductible in the year incurred

Frequently Asked Questions

What livestock valuation method should NZ farmers use?

NZ farmers can use the National Standard Cost scheme (recommended for most) or the Herd scheme (good for cattle/deer). The Herd scheme may defer tax but has compliance costs. Consult a rural tax specialist to choose the best method for your situation.